Fannie, Freddie Surge as U.S. Approves $1 Million Loans
- FHFA announces increase in limits for U.S.-backed mortgages
- Changes reflect soaring home prices during the pandemic
Homes in San Francisco, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Fannie Mae and Freddie Mac climbed after their regulator announced that the mortgage giants will be able to back loans worth nearly $1 million in some of the most expensive U.S. housing markets.
Reflecting the surge in home prices during the Covid-19 pandemic, Fannie and Freddie will be able to buy loans of $970,800 in areas including San Francisco, Los Angeles and New York, the Federal Housing Finance Agency announced Tuesday. The increased loan limits apply to single-family residences.